Xenia Hotels & Resorts, Inc. · NYSE:XHR
Xenia Hotels & Resorts — Investor Presentation (September 2015)
31 slides from Xenia Hotels & Resorts's investor presentation, Sep 14, 2015
Slide 1: Investor Presentation September 2015
1 Investor Presentation September 2015 Andaz Napa Grand Bohemian Hotel Orlando Marriott Woodlands Waterway Hotel & Convention Center
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
2 Forward-Looking Statements; Non-GAAP Financial Measures This presentation has been prepared by Xenia Hotels & Resorts, Inc. (the “Company” or “Xenia”) solely for informational purposes. This presentation contains, and our responses to various questions from investors may include, “forward-looking
Slide 3: Overview of Xenia
3 Overview of Xenia (1) As defined by STR (2) As of 8/31/2015 (49 wholly owned, 1 majority owned) (3) 2015 Q2 year-to-date statistics National platform of high quality assets focused on the Top 25 Markets1 and key leisure destinations in the U.S. Invest primarily in premium full service, lifesty
Slide 4: Timeline of Xenia Formation and Portfolio Evolution
4 Timeline of Xenia Formation and Portfolio Evolution Source: InvenTrust 10K (2007-2014); Xenia 10K thereafter. (1) Includes the sale of 52 select service assets to Northstar / Chatham which closed in November 2014. (2) InvenTrust acquired two hotel portfolios in 2007, which were placed under curren
Slide 5: Timeline of Xenia Formation and Portfolio Evolution
5 Timeline of Xenia Formation and Portfolio Evolution May 2015: Joseph Johnson joins as CAO March 2015: Completes Modified Dutch Tender Offer and purchases approximately $37mm of common stock Pays off the $26 mm Andaz San Diego loan Feb 2015: Completes separation from InvenTrust Lists on N
Slide 6: Portfolio Overview
6 Portfolio Overview As of 9/9/2015 HI FL NM DE MD TX OK KS NE SD NDMT WY CO UT ID AZ NV WA CA OR KY ME NY PA VT NH RI CT WV INIL NC TN SC AL MS AR LA MO IA MN WI NJ GA DC VA OH MI MA Hotel Under DevelopmentOperating Hotels National footprint in 34 markets including 21 states and the District of Col
Slide 7: Portfolio Overview (cont.)
7 Chain Scale Brand Family Property Managers1 As of 9/9/2015 Portfolio Overview (cont.) Note: Categories by number of total rooms. Totals may not equal 100% due to rounding. (1) Other managers include: Sage, Kessler, Concord, Interstate, Loews and White Lodging Upper Upscale 67% Luxury 10% Upscale 2
Slide 8: Recent Acquisitions In-Line with Investment Strategy
8 (1) Grand Bohemian Hotel Charleston was a development project in which the Company is a majority owner. (2) Kimpton Portfolio includes RiverPlace Hotel, Canary Hotel and Hotel Palomar in Portland, Santa Barbara and Philadelphia. (3) Hotel Monaco Portfolio includes hotels in Chicago, Denver and Sal
Slide 9: Kimpton Portfolio Acquisition
9 Kimpton Portfolio Acquisition Purchase Price $245 Million 2016 Est. EBITDA $18.5 - $20.5 Million 2016 EBITDA Multiple 12.0x – 13.2x 2015 TTM RevPAR 2015 YTD RevPAR Growth $224.59 10.1%
Slide 10: RiverPlace Hotel
10 RiverPlace Hotel Year Built 1985 Number of Rooms 84 Total Meeting Space 2,760 square feet Management Kimpton Upside Opportunities Refine market mix and rate strategy. Reduce the size of the restaurant and create an upscale meeting space focused on social catering Portland, Oregon
Slide 11: Canary Hotel
11 Canary Hotel Year Built 2005 Number of Rooms 97 Total Meeting Space 7,374 square feet Management Kimpton Upside Opportunities Refine market mix and rate strategy. Upgrade rooftop pool and catering space. Santa Barbara, California
Slide 12: Hotel Palomar
12 Hotel Palomar Year Built 2009 Number of Rooms 230 Total Meeting Space 6,000 square feet Management Kimpton Upside Opportunities Refine market mix and rate strategy. Enhance efficiency of building systems. Philadelphia, Pennsylvania
Slide 13: Grand Bohemian Hotel Charleston
13 Grand Bohemian Hotel Charleston Date Completed August 2015 Number of Rooms 50 Total Meeting Space 3,000 square feet Management Kessler Ownership 75% Xenia / 25% Kessler Total Development Cost $30.8 million ($7.2 million equity contribution by Xenia) Charleston, South Carolina
Slide 14: Grand Bohemian Hotel Mountain Brook
14 Grand Bohemian Hotel Mountain Brook Anticipated Completion Q4 2015 Number of Rooms 100 Total Meeting Space 12,000 square feet Management Kessler Ownership 75% Xenia / 25% Kessler Anticipated Total Development Cost $44.2 million ($9.6 million equity contribution by Xenia) Mountain Brook, Alabama
Slide 15: Asset Management Platform with Uniquely Integrated Capabilities
15 Asset Management Platform with Uniquely Integrated Capabilities Integrated Platform Revenue enhancement Cost containment Frequent interaction with management companies Integrated with asset management team to identify and execute new opportunities at attractive costs Development experti
Slide 16: Driving Improvements – The Process
16 Driving Improvements – The Process Thorough review of all properties’ cost structures and revenue opportunities during due diligence and immediately following purchase. • At the Andaz San Diego, Xenia determined a need for restructuring of F&B and other operations. Overall profitability in both d
Slide 17: Driving Improvements – The Results
17 Driving Improvements – The Results Hotels Included: Andaz San Diego, Andaz Savannah, Bohemian Hotel Celebration, Bohemian Hotel Savannah Riverfront, Grand Bohemian Hotel Orlando, Hotel Monaco Chicago, Hotel Monaco Denver, Hotel Monaco Salt Lake City, Hyatt Key West Resort & Spa, Hyatt Regency San
Slide 18: Driving Improvements – Hotel Case Examples: Hyatt Key West Resort & Spa
18 Driving Improvements – Hotel Case Examples Hyatt Key West Resort & Spa • Hyatt Key West Resort & Spa was acquired in mid- November 2013 for $76 million, or $644,100 per key. • Immediately upon acquisition, Xenia implemented a more aggressive rate strategy combined with an expense maintenance plan
Slide 19: Driving Improvements – Hotel Case Examples: Hyatt Regency Santa Clara
19 Driving Improvements – Hotel Case Examples Hyatt Regency Santa Clara • Hyatt Regency Santa Clara was acquired in mid- September 2013 for $93 million, or $185,300 per key. • Upon acquisition, Xenia immediately implemented a more aggressive rate strategy combined with an expense control plan. Since
Slide 20: Driving Improvements – Hotel Case Examples: Andaz San Diego
20 Driving Improvements – Hotel Case Examples Andaz San Diego • Andaz San Diego was acquired in early 2013 for $53 million, or $333,300 per key. • Close analysis of the Hotel’s operating structure and expense levels indicated significant opportunity for efficiencies. Several of the Hotel’s food and
Slide 21: Driving Improvements – Hotel Case Examples: Hotel Monaco Portfolio
21 Driving Improvements – Hotel Case Examples Hotel Monaco Portfolio Hotel Monaco Chicago Hotel Monaco Salt Lake City Hotel Monaco Denver • Hotel Monaco Denver, the Hotel Monaco Chicago, and the Hotel Monaco Salt Lake City were acquired as a portfolio in November 2013 for $189 million, or $312,400 p
Slide 22: Driving Improvements – Hotel Case Examples: Prior Acquisitions
22 Driving Improvements – Hotel Case Examples Prior Acquisitions Based on trailing twelve months prior to acquisition. Marriott Dallas City Center Acquired 2010 • Purchased from a publicly traded lodging REIT. • Converted from Westin to Marriott. $15.4 million renovation converting the top floor to
Slide 23: Driving Improvements – Property Optimization Process
23 Driving Improvements – Property Optimization Process • The Property Optimization Process includes an intensive five to seven day site-visit by Xenia team members, followed by a period of analysis and additional research. Based upon this work, a comprehensive set of recommendations are provided to
Slide 24: Second Quarter Results
24 Second Quarter Results Same Property RevPAR Same-Property RevPAR increased 4.7% from the second quarter of 2014 to $150.19, driven by a 5.2% ADR increase slightly offset by a 0.5% decrease in occupancy Excluding Houston, the portfolio RevPAR increased 6.3%, indicating the strength of the port
Slide 25: Capital Recycling
25 Capital Recycling Recently announced acquisitions and select dispositions will drive further improvement in key portfolio metrics. RiverPlace Hotel Canary Hotel Hotel Palomar 2015E EBITDA / Rooms EBITDA Key Portfolio as of 6/30/15 12,643 285,000 22,542 Kimpton Acquisitions1 411 18,000 43,796 Pro
Slide 26: 2016 Incremental EBITDA
26 2016 Incremental EBITDA Hotel Commonwealth In addition to anticipated growth in its same-store portfolio, Xenia anticipates approximately $21.0 to $23.5 million of additional EBITDA from acquisitions in 2016 Low End High End Kimpton Acquisitions 18.5$ 20.5$ Kimpton Acquisitions- 2015 EBITDA (7.0)
Slide 27: Overview of Dividend Policy
27 AFFO Payout Ratio Overview of Dividend Policy Dividend Yield Sources: Company Financials, Bloomberg, SNL Financial Note: Peer data reflects a 09/09/2015 pricing date. (1) AFFO payout ratio calculated using most recent annualized dividend divided by SNL Financial median 2015E AFFO. (2) Xenia AFFO
Slide 28: Staggered Debt Maturity Profile
28 Staggered Debt Maturity Profile Note: Data as of 6/30/2015 and proforma information in connection with 3 Kimpton acquisitions and loan pay offs for Andaz San Diego and Hilton Garden Inn DC. Assumes all extension options exercised. (1) Unsecured Line of Credit of $400 million shown at fully extend
Slide 29: Peer Valuation Summary
29 EBITDA / Key ($ in millions)1 Peer Valuation Summary 2015E AFFO Multiple 2015E EBITDA Multiple1 16.8x 15.8x 13.5x 12.8x 12.4x 12.4x 12.1x 11.8x 11.7x 10.2x BEE PEB HT CHSP LHO DRH SHO FCH RLJ XHR Peer Median: 12.4 x $40.6 $33.4 $30.4 $28.7 $24.6 $24.4 $23.2 $21.2 $20.0 $18.9 BEE LHO CHSP PEB SHO
Slide 30: Key Takeaways
30 Key Takeaways National platform of high quality assets located in Top 25 markets and key leisure destinations consisting premium full-service, lifestyle and urban upscale hotels Experienced management team with track record of executing on investment strategy Successful implementation of asset ma
Slide 31: Non-GAAP Financial Measures
31 Non-GAAP Financial Measures We consider the following non-GAAP financial measures useful to investors as key supplemental measures of our operating performance: EBITDA, Adjusted EBITDA, FFO and Adjusted FFO. These non- GAAP financial measures should be considered along with, but not as alternativ
Xenia Hotels & Resorts — Investor Presentation (September 2015) on 6ix